It was very clear that there was no way it could be a living giant serpent or “wurm” since nothing that large exists, looks like that, or can survive in the frigid waters of this volcanic island. The more plausible explanation, when details were examined, was that this was a net or cloth caught in the current which undulated like a living thing.

It appears that the person who took the famous video is looking to be awarded some prize money offered for photo evidence of the creature.

The district council of Fljótsdalshérað municipality in East Iceland has appointed a 13-person investigative commission to evaluate whether the infamous lake monster Lagarfljótsormurinn is the phenomenon filmed by Hjörtur Kjerúlf, farmer at Hrafnkelsstaðir, last winter.

This summer, Hjörtur has made claim to ISK 500,000 (USD 4,200, EUR 3,400), a prize in a competition the local municipality launched 15 years ago on photos of Lagarfljótsormurinn. The prize was never paid out because none of the photos entered were thought to show the monster.

However, the district council at the time promised that if the monster would ever be caught on camera, the photographer would be entitled to the prize.

Source: Iceland Review Online

According to a local paper, the members of the district council believe the monster exist but have to be careful about giving out the prize money. Thus, there will be an investigation commission to determine the authenticity of the video and what it shows. The commission will include a scientist.